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It is nowhere as big as the liquefied natural gas projects touted for northwest B.C., but a proposed plant near Squamish has as good a chance as any to be the first to be built in the province.

Woodfibre LNG’s size helps.

With an annual output of 1.2 million tonnes, it is about one-tenth the size of the proposed $10-billion-plus northern projects, which significantly cuts down on its capital costs.

It also has a private owner, Indonesian billionaire Sukanto Tanoto, whose holding company, Raja Garuda Mas International (also known as Royal Golden Eagle), owns Pacific Oil and Gas Ltd., of which Woodfibre LNG is a subsidiary.

The private ownership means a more simplified decision-making process when it comes to the estimated $1.6-billion investment than takes place with large public companies where projects compete internally for capital, noted Byng Giraud, Woodfibre LNG’s vice-president of corporate affairs.

The project will also largely depend on existing natural gas pipelines. As part of the project, FortisBC would build a 53-kilometre pipeline extension.

Other major projects such as Shell-led LNG Canada in Kitimat or Petronas-led Pacific Northwest LNG in Prince Rupert will need massive pipelines — as large as 1.2 metres in diameter — to transport gas more than 500 kilometres from northeastern B.C., at a capital cost of billions of dollars.

Woodfibre LNG will also be built on a former pulp mill site, already zoned for industrial use.

Finally, while Woodfibre LNG is expected to sell its gas in the open market, it does have a fallback position of selling gas to energy producers owned by its partner companies. That could make the project less sensitive to a drop in gas prices in Asia.

Giraud said the company is aiming for a “soft” investment decision before the end of the year. That could lead to some equipment being ordered before a final decision is made in 2015, with the project possibly being ready to export in 2017.

Petronas and Shell’s leading LNG projects — among 14 proposed for the province — are pencilled to start production in 2018 and 2019.

“There is another space in the LNG world for projects of more modest size that take advantage of existing infrastructure,” said Giraud.

Woodfibre also got a boost in its environmental assessment process when the federal government agreed to substitute their process with the provincial process. It means there will not be two separate reviews, which industry advocates have long complained delay decisions on projects.

Woodfibre expects to submit its project applications to the B.C. Environmental Assessment Office in the next several months. It puts a decision on the project from B.C. and Ottawa in 2015.

The LNG plant has attracted opponents who are largely concerned that the industrial project is not compatible with the tourism- and recreation-based economy that is evolving in the Howe Sound area.

The volume of greenhouse gas emissions and the types of air pollutants will depend on whether the plant is powered solely by electricity from BC Hydro or by natural gas, a decision that has not yet been made.

About 40 LNG vessels would pick up and transport the liquefied gas annually from the Woodfibre plant.

My Sea to Sky spokeswoman Tracey Saxby says Squamish is at a crossroads and the community needs to carefully determine whether the LNG project is compatible with its new, evolving economy.

The area is a popular boating, kite boarding, hiking, mountain biking and rock climbing destination, but also is attracting companies that cater to these activities, including technology companies, said Saxby.

The Internet mountain biking news and sales site Pinkbike announced recently it is moving from Chilliwack to Squamish, while developers Solterra are planning a public market, climbing gym and indoor bike park. This spring, a $24-million gondola is set to open just south of Squamish.

Saxby notes that 4,000 people have moved to Squamish since the pulp mill closed in 2006.

“The big question is what are we losing by allowing this LNG plant to go ahead,” she said.

The Future of Howe Sound Society (FHSS) also wants the province to take a broader examination of the LNG plant.

Ruth Simons, FHSS’s executive director, noted there are other industrial projects proposed for Howe Sound, including a $500-million garbage incinerator and a gravel mine.

“These projects must not be looked at on an individual basis. They have to look at the cumulative impacts of them,” said Simons.

Not only is that not happening, Simons said they do not have confidence that the provincial or federal governments are taking a robust examination of these LNG projects as they are already being promoted as the economic future of the province.

Premier Christy Clark is banking on five LNG plants being built, supporting 75,000 jobs and fuelling a $100-billion prosperity fund, although industry observers and critics suggest there will likely only be one or two built.

The Woodfibre LNG plant is estimated to employ about 100 people, and create 300 construction jobs during its two-year build period.

Squamish mayor Rob Kirkham said that they are interested in economic projects that provide jobs and taxes in the community, but noted the municipality has not taken an official position on the Woodfibre plant.

He said the municipality is trying to help the community become better informed about the project by creating a committee of business, First Nation, tourism and environmental representative to examine the proposal in greater detail.

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Squamish LNG plant could have jump on larger northern B.C. proposals

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